Phenix City homes continue to sell faster than a year ago

Phenix City homes continue to sell faster than a year ago
The Phenix City median home sales price in July was $175,000, an increase of 29.2 percent from one year ago. (iStock)

Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 125 units during July, up 50.6 percent from 83 sales in the same month a year earlier. July sales were up 19 percent compared to 105 sales in June. Results were 38.9 percent above the five-year July average of 90 sales. Two more resources to review: Quarterly Report and the Annual Report.

For all Phenix City area home sales data, click here.  

Inventory: Total homes listed for sale in Phenix City during July were 498 units, a decrease of 1.4 percent from July 2017’s 505 units and an increase of 6 percent from June 2018’s 470 units. Phenix City also experienced a decline in months of supply. July months of supply totaled 4 months, a decrease of 34.5 percent from July 2017’s 6.1 months of supply. July’s months of supply also decreased from June’s 4.5 months of supply.

Pricing: The Phenix City median sales price in July was $175,000, an increase of 29.2 percent from one year ago and an increase of 10.4 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by 3.8 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for homes sold during July was 105 days, a decrease of 10.3 percent from 117 days in July 2017, but an increase of 8.2 percent from 97 days in June.

Forecast: July sales were 18 units, or 16.8 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 107 sales for the month, while actual sales were 125 units. ACRE forecast a total of 710 residential sales in the Phenix City area year-to-date, while there were 668 actual sales through July.

ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory, as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.

NAR’s national perspective:  During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

Click here to view the entire monthly report.

The Phenix City Residential Monthly Report is developed in conjunction with the Phenix City Board of Realtors.

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